Banks are considering offering new loans to Elon Musk He secured his Tesla shares to replace some of the $13 billion in high-interest debt he took on to fund the Twitter deal, sources told Archyde.com.
And the banks, led by Morgan Stanley, were forced to fund the package of loans granted to fund the Twitter deal from their own money after the deterioration of credit markets and the turbulent start to the Musk era at Twitter, which made debt difficult to collect debt from institutional investors.
Discussions so far have focused on how to replace the $3 billion in unsecured debt on which Twitter is paying an interest rate of 11.75%.
It is estimated that the company will face annual interest costs of about $1.2 billion if the current debt structure continues, which is more than Twitter’s earnings for all of 2021.